• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 11 hours Indonesia Stands Up to China. Will Japan Help?
  • 4 hours Which emissions are worse?: Cows vs. Keystone Pipeline
  • 13 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 14 hours Trump capitulated
  • 5 hours Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 17 hours Three oil pipeline projects inch toward goal-line for Canada
  • 22 hours The Libyan Oil in a Sea of Chaos, War and Disruptions
  • 2 days Trump has changed into a World Leader
  • 16 hours Yet another Petroteq debt for equity deal
  • 12 hours US Shale: Technology
  • 7 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 1 day OIL & GAS LOSSES! Schlumberger Posts $10B Loss in 2019
  • 13 hours Gravity is a scam!
  • 2 days Iranian government can do everything to avoid attacking American people.
Nick Cunningham

Nick Cunningham

Nick Cunningham is an independent journalist, covering oil and gas, energy and environmental policy, and international politics. He is based in Portland, Oregon. 

More Info

Premium Content

What’s Behind The Mid-Week Oil Price Crash

Oil prices crashed mid-week on news that U.S. crude oil inventories spiked, offering evidence that the oil market is not as tight as expected only a few days ago. .vemba-player-sticky{ min-width: 800px; z-index: 100000; }

U.S. inventories jumped by 10 million barrels last week, rising to 470.6 million barrels. That is about 34 million barrels higher than at this point last year, and stocks are up about 20 million barrels in the last month alone. Rising inventories, especially consecutive increases of this magnitude, cut against the narrative that the oil market is suffering from a supply deficit.

WTI crashed on the news, falling more than $2 per barrel in midday trading on Thursday. Adding to crude’s woes was news that Russia continues to produce in excess of its agreed upon cut as part of the OPEC+ deal. “When the U.S. crude-oil warehouses bulge to their highest levels since September 2017, while production continues to set new high-water marks, warning signals should be flashing red,” said Stephen Innes, head of trading at SPI Asset Management, according to Bloomberg.

The oil market was roughly balanced in April, after having fallen into a supply deficit on the order of about 480,000 bpd, according to Standard Chartered. While geopolitical flashpoints dominate the…




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News